Concept:Consumer sovereignty is the idea that consumers control the market through their choices.
Explanation:The term “sovereignty” refers to supreme power or authority.
In economics, consumer sovereignty means that consumers hold the power to decide what goods and services are produced.
Producers must respond to consumer demand because they want to make sales and earn profit.
When consumers buy certain products, they signal to businesses what to produce.
When they refuse to buy other products, businesses must change their offerings.
Because consumers have this ability to direct production, they are often described as the “king” in the marketplace.
This expression simply compares the consumer’s power to that of a ruler who controls the market.
Answer:The consumer is a king.